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Supreme Court Amends Rules on Lawyers in Bankruptcy

By Order dated August 10, 2021, the Supreme Court of Pennsylvania amended certain of the Pennsylvania Rules of Disciplinary Enforcement relating to lawyers who become debtors in bankruptcy.

The Court amended Rule 208(g), regarding costs in disciplinary proceedings, to add a new subsection (6) requiring that a lawyer who is subject to an administrative fee, expenses, or penalties taxed in a disciplinary proceeding must notify the Executive Director of the Board in writing of the case caption and docket number within 20 days after filing for bankruptcy protection.

Rule 218(f), regarding reinstatement, is amended to add a new subsection (4) imposing the same requirement on a lawyer who owes expenses or penalties taxed in a reinstatement proceeding.

A new Rule 532 is added to the rules regarding the Pennsylvania Lawyers Fund for Client Security, to impose a requirement that a lawyer who has been notified of a pending claim, or on account of whom the Fund has made a disbursement which the lawyer has not reimbursed in full must notify the Executive Director of the Fund of the case caption and docket number within 20 days. If a lawyer receives notice of a claim or disbursement after filing of the bankruptcy petition but before it is concluded, the lawyer must also give notice.

The proposed amendments were published in the Pennsylvania Bulletin on October 31, 2020. They take effect September 9, 2021.


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